The relationship between R&D and growth in advanced economies: An empirical study on G-7 countries

In the economic growth literature, innovation, technological advancement, and openness to the outside world hold a significant place among the fundamental determinants of long-term development. Innovation and technology increase efficiency by improving production processes, while openness strengthens economic performance by fostering economies of scale and international competitiveness. Within this framework, this study aims to examine the long-term effects of research and development (R&D) expenditures, information and communication technologies, and exports on economic growth in G-7 countries. In the study, conducted using cointegration analysis, both technology and innovation-based factors and foreign trade dynamics were evaluated to increase the explanatory power of the model. The findings indicate that growth dynamics based on knowledge, technology, and openness to the outside world are prevalent in the G-7 countries. R&D expenditures, information and communication technologies, and exports, in particular, stand out as positive determinants of economic growth. These results demonstrate that innovation and technology-focused policies, as well as foreign trade strategies, have critical effects on economic growth in developed economies and provide guidance for policymakers in the design of long-term growth strategies.